BCOR 2304 Final Exam Questions and Answers Already Passed

BCOR 2304 Final Exam Questions and Answers Already Passed strategy ✔✔a set of goal-oriented actions a firm takes to gain and sustain better performance over competitors strategy managment ✔✔combines analysis, formula ...

BCOR 2304 Final Exam Questions and Answers Already Passed strategy ✔✔a set of goal-oriented actions a firm takes to gain and sustain better performance over competitors strategy managment ✔✔combines analysis, formulation, and implementation in finding competitive advantage mastery= view organization as a whole competitive parity ✔✔two or more firms perform at the same level strategic positioning ✔✔position in industry that allows firms to provide value to customers, while controlling costs mission ✔✔reason for existence, what an organization does vision ✔✔statement of some desired future state values ✔✔a statement of key values that an organization is committed to AFI framework ✔✔Analysis: vision, mission, values Formulation: corporate, business, or functional strategy Implementation: structure, culture, control-- corporate governance and business ethics purpose of AFI ✔✔-predicts differences in firm performance -create and implement a strategy top-down strategic planning ✔✔top management attempts to program future success black swan events ✔✔highly unlikely, but large impact events emergent strategy ✔✔unplanned strategy from the bottom of the organization. adapting the strategy/original plan to changing market conditions. EX: nyquil realized strategy ✔✔combination of intended and emergent strategy PESTEL Framework Factors ✔✔Political, economical, sociocultural, technological, ecological, legal political PESTEL ✔✔PR, litigation, lobbying economical PESTEL ✔✔growth rates, interest rates, levels on unemployment, price stability, and exchange rates sociocultural PESTEL ✔✔demographics, cultural norms ex: rise in electric vehicals technological PESTEL ✔✔product and process innovations- application of knowledge ecological PESTEL ✔✔the environment decides the state of usable materials legal PESTEL ✔✔laws, court decisions, mandates porter's five forces factors ✔✔risk of entry, competitive rivalry, buyer power, supplier power, substitutes five forces key assumptions ✔✔-from the point of view of existing firms in the industry -snapshot in time -stronger each force is, the more limits risk of entry - five forces ✔✔-economies of scale -brand loyalty -absolute cost advantage (relative to new entrants) -if competition is HIGH, barriers to entry are LOW competitive rivalry - five forces ✔✔companies in the same industry struggle to gain market share buyer power - five forces ✔✔-purchase in larger quantities -switching costs are low -buy from several supplying companies at once (amazon) -threat of entry can be used to drive prices down supplier power - five forces ✔✔-products are vital to industry -switching costs for companies are high -suppliers can threaten to enter their customers' industry themselves substitutes - five forces ✔✔-incumbent firms have in size, cost, quality -the intensity of rivalry among competitors is determined by: competitive industry structure, industry growth, strategic commitments, exit barriers strategic position ✔✔strategic profile based on the difference between value creation and cost (V-C) <-- economic value network effects ✔✔the value of a product for a user increases with the number of total users capital requirements ✔✔"entry ticket" into a new industry resource-based view assumptions ✔✔-heterogeneity: resources differ across firms -immobility: resources are not transferrable capabilities ✔✔capacity to deploy tangible resources that have been integrated to achieve desired end state VRIO framework ✔✔-Valuable (helps firm exploit an external opportunity or offset a threat) -Rare -Inimitable -Organized to capture the value of the resource increase cost of imitation ✔✔-better expectations of future resource value -path dependence -legally protected (IP) -social complexity -ambiguous cause core rigidity ✔✔failed core competency walmart cost-leader strategy ✔✔-low cost leader -invest heavily in operating systems -invest in relationships with suppliers -cost-effective management systems -employees don't have specialized training (no $ spent) -don't invest in marketing/sales, etc obtaining competitive advantage (cost leadership) ✔✔control cost drivers and emphasize operations and scale risks to cost leadership ✔✔-competitors imitate -technology changes -blinded by customer preferences differentiation strategy ✔✔-value by unique features -superior quality -high customer service -prestige or exclusivity -rapid innovation differentiation strategy requirements ✔✔-develop new systems and processes -shape perceptions through advertising -R&D capabilities -low turnover and high motivation purpose of differentiation strategy ✔✔-lower subsequent costs (lexus reliability -raise buyer value (mercedes) risks of differentiation strategy ✔✔-cost of uniqueness is too great -counterfeit products -may no longer be valued by customers focused strategy ✔✔focusing on one buying group risks of focused strategy ✔✔-firms may be out -focused by innovative competitors -preferences of niche customers may change` -lack of economies of scale and bargaining power value creation frontier ✔✔trade offs between low cost and differentiation integrated strategy ✔✔-substantial process technology superiority ex//: toyota's hybrid engines -focus on specific customer value perceptions while lower costs on other areas -sharing resources, minimizing waste-leveraging brand equity across market segments innovation drives competitive advantage (process) ✔✔1) idea 2) invention 3) innovation 4) imitation patent ✔✔exclusive rights to benefit from using a technology for a specified time period in exchange for public disclosure of the idea trade secret ✔✔information that a being keeps confidential, no life span. recognized under common laws in each state industry life cycle ✔✔disruption- new products w/ different tech growth- more entries than exits shakeout- more exits than entries maturity- entry and exits slow and become the same decline-minor or major disruptions first-mover advantages ✔✔-exploit network effects -establish significant brand loyalty -enable economies of scale and learning effects -creating switching costs for customers -accumulate valuable knowledge and patents -locking up distribution channels and suppliers First mover disadvantages ✔✔-pioneering costs -quality assurance mistakes -investments in obsolete technology -plunging into the chasm: mass-market may differ from the needs of early adopters patent types ✔✔utility, design, plant utility patent ✔✔a patent that protects the functionality of the invention (20 years) design patent ✔✔a patent that offers protection for the way a product looks (14 years) plant patent ✔✔new/hybrid product idea patent drawbacks ✔✔-lengthy and expensive -disclose information than can hurt business trademark ✔✔distinctive word, name, symbol that identifies a product. 13 months, but lasts indefinitely if renewed copyright ✔✔legal protection of original works for the life of the author + 70 years blue oceans ✔✔untapped market space and creation of additional demand red oceans ✔✔-crowded market space -rivalry is cut-throat -products become commodities and competition is focused on price value innovation ✔✔leap in differentiation and low cost creates value for both customer and firm Value Innovation - Lower Costs ✔✔-Eliminate factors -Reduce factors Value Innovation - Increase Perceived Consumer Benefits ✔✔raise factors create factors path to blue oceans ✔✔1- look across alternatives (ex//: NetJet) 2- look across strategic consumer groups (ex Yellowtail) 3- look across chain of buyers 4- look across complementary products/services (ex//: Barnes & Noble) 5-look across functional appeal and emotional appeal to buyers (ex//: Cement for homeless) 6- look across time platform business ✔✔multi-sided markets; matches producers and consumers and creates value for both platform ecosystem ✔✔the market environment in which all players participate relative to the platform platform ecosystem benefits ✔✔1- platforms scale more efficiently than pipelines by eliminating intermediaries 2- platforms unlock new sources of value creation and supply (ex//: AirBnB) 3- platforms benefit from community feedback (ex//: TripAdvisor) strategies to win platform war ✔✔-ensure a supply of complements -leverage killer applications -aggressively marketing/price promotions -license the format -cooperate with competitors incremental innovation ✔✔existing market, existing technology Architectural Innovation ✔✔new market, existing technology disruptive innovation ✔✔existing market, new technology radical innovation ✔✔new market, new technology